Should you consider NASDAQ:IDCC for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if INTERDIGITAL INC (NASDAQ:IDCC) is suited for quality investing. Investors should of course do their own research, but we spotted INTERDIGITAL INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into INTERDIGITAL INC's Quality Metrics.

• The 5-year revenue growth of INTERDIGITAL INC has been remarkable, with 22.19% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• INTERDIGITAL INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 252.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 2.53, INTERDIGITAL INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of INTERDIGITAL INC stands at 167.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 63.34%, INTERDIGITAL INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of INTERDIGITAL INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to IDCC. IDCC was compared to 283 industry peers in the Software industry. While IDCC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IDCC is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of IDCC contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.